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IEA Raises Oil Demand Forecast, Says U.S. Protectionism a Potential Risk

Published 03/15/2018, 05:14 AM
© Reuters. IEA raises oil demand but warns against U.S. protectionism.
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Investing.com- Global demand for oil is expected to increase in the next year but U.S. protectionism could pose a risk to growth forecasts, the International Energy Agency said in its latest forecast on Thursday.

The agency increased its global demand growth outlook for 2018 by 100,000 barrels per day (bpd) to 1.5 million bpd.

The Organization of the Petroleum Exporting Countries and Russia forecast was raised to 32.4 million bpd from 32.3 million bpd in February. Its forecasts for non-OPEC supply was unchanged at 1.8 million bpd.

The agency noted that changes in trade policy could have a negative impact on oil production, with a slowdown most likely hitting maritime and trucking fuels.

Global oil supply in February fell slightly to 97.9 million bpd but was higher compared to the year before. An increase in non-OPEC output pushed the oil supply up by 0.7 million bpd compared to 2017. Meanwhile OPEC crude oil production decreased to 32.1 million bpd in February.

After the report, U.S. West Texas Intermediate (WTI) crude futures was trading at $60.95 a barrel compared to $61.08 prior.

Brent crude futures, the benchmark for oil prices outside the U.S., was $64.78 a barrel from $64.89 before.

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